W1-2-60-1-6

JOMO KENYATTAUNIVERSITY OF AGRICULTURE AND TECHNOLOGY

University Examinations 2021/2022
FORTH YEAR FIRST SEMESTER SPECIAL/SUPLLEMENTARY EXAMINATION
FOR THE DEGREE OF BACHELOR OF COMMERCE

HBA 2402: ADVANCED AUDITING

DATE: FEB/MARCH, 2021 TIME: 2 HOURS

INSTRUCTIONS: Answer Question ONE and Any Other TWO Questions.

Question One – 30 Marks

a) Outline the objective of assurance engagement. [6 marks]

b) Explain four methods of obtaining and gathering audit evidence. [8 marks]

c) Explain the post balance sheet events that would be a concern of the auditor.
[8 marks]

d) Give light to four application controls necessary in a computerized audit. [8 marks]

Question Two – 20 Marks

a) Outline five assertions performed by the auditor to verify information in the published
financial statements in order to determine a true and fair view opinion. [10 marks]

b) Explain factors to consider when setting materiality levels in an audit. [10 marks]

Question Three – 20 Marks

a) ISA 570: Going concern, is the assumption that the business will continue in existence
for the foreseeable future without any intention to stop its operations.
Explain the indicators an auditor consider to cast doubt on ISA 570. Of an entity.
[12 marks]

b) Discuss sampling as an audit technique. [8 marks]

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Question Four – 20 Marks

a) Right sizing is the reappraisal of information technology facilities to identify the most
appropriate means of providing the required resources. Discuss this in right of the
auditor’s perspective. [16 marks]

b) List steps the auditor should take in order to apply selected CAATs.[4 marks]